There are many ways in which Federal Reserve can control Dollar value through Federal Open Market Committee (FOMC):
1. Reserves of Major Currencies.
US has big reserves of all the major currencies in the world, if needed they may unload all the reserves to BUY back depreciating Dollar to strengthen Dollar.
2. Special Drawing Rights (SDR)
These are the rights given by IMF (International Monetary fund) to withdraw money from IMF. It was special formula used to setup BOP (Balance of Payment).
In 1960-70 SDR was most famous exchange mode.
These rights are given to US because US is largest contributer in IMF (40% approx.)
3. Gold Stocks
US may use it's gold stock to buy back dollar by selling gold in International Market. It happened in 1979 under President Karter when US sold gold worth $7 billion.
4. Money Supply
By Regulating money supply in market through regular mechanism increasing Rates to absorb money from market and decreasing Rates to increase money supply.
Printing Money is not a feasable option everytime. Money is printed through proper Mechanism.
People->Bank->Federal Reserve---->Printing Money
People informs bank and Banks passes on the message that their is need for Money to Federal Reserve and they Print Money.
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